Can Prada revive Versace like it did with Miu Miu?

A new storm is quietly brewing in the fashion world — this time, stirred by Prada. Earlier today, the Italian luxury powerhouse confirmed its acquisition of Versace from Capri Holdings for €1.25 billion (approximately $1.38 billion), with the final price subject to adjustments based on the deal’s terms. In September 2018, Michael Kors Holdings acquired Versace for $2.1 billion and shortly afterward rebranded as Capri Holdings Limited. The new name reflected the company’s transformation into a global luxury fashion group, encompassing Michael Kors, Jimmy Choo, and Versace. However, under Capri’s stewardship, Versace has struggled to regain the glamor and momentum that defined the brand for decades. According to Capri’s latest financial report, Versace’s revenue dropped 15% year-over-year in the third quarter of fiscal 2025, with a notable 11% decline in the Asian market. By December 2024, rumors had begun circulating that Capri was looking to offload the ailing label. Now, as Versace faces stalled growth and an uncertain future, Prada’s timely move could offer the brand a new direction — and perhaps, a much-needed second act. Why Versace? Mention Medusa, and one brand inevitably comes to mind: Versace. Since its founding in 1978 by Gianni Versace, the house has become synonymous with bold colors, flamboyant sensuality, and a strikingly theatrical vision of “sexy luxury.” Its aesthetic has remained unapologetically maximalist, an audacious counterpoint to minimalism’s restraint. Among its most enduring design signatures is the baroque print, which first debuted in the brand’s Fall/Winter 1991 collection. With its ornate, swirling motifs, the print quickly became a defining emblem of the house, featured on silk blouses, body-hugging dresses, and statement scarves. Over the years, this print has remained a red-carpet and editorial favorite, embraced by celebrities like Gigi Hadid and Luke Evans, as well as Asian pop icons like Jolin Tsai and Angela Chang. On Xiaohongshu, the baroque motif continues to thrive, with fashion influencers and everyday users alike showcasing how to weave the classic design into contemporary, wearable looks — proof of its enduring cultural resonance. It’s this unmistakable visual identity that makes Versace an ideal fit for Prada Group. While Prada is known for its intellectual minimalism and Miu Miu for its youthful rebellion, the group has long lacked a brand that embodies bold, unapologetic sensuality with mass appeal. Versace fills that gap. From Madonna’s conical bustier to Cardi B’s mirrored bodysuits, the house has mastered the art of provocative allure. This acquisition brings a new creative dimension — and a potent dose of sex appeal — to Prada Group’s portfolio, expanding its reach in both aesthetic range and global influence. Can Versace become the next Miu Miu? Why is Prada making a move on Versace now? The answer may lie in the group’s recent history of brand management. Prada has already proven its ability to revive a once-overlooked label — Miu Miu — and turn it into a breakout success with a clear, contemporary identity. According to the group’s 2024 fiscal report released on March 4, 2025, Miu Miu’s retail revenue surged by 93% YoY, marking an all-time high. Notably, this rising star of the Prada Group was seen as a peripheral brand just four years ago. The turning point came in 2021, when Miu Miu collaborated with former Balenciaga stylist Lotta Volkova on its Spring/Summer 2022 collection. Featuring low-rise mini skirts and ballet flats, the collection resonated with Gen Z’s appetite for self-expression through fashion, quickly going viral on social media. Frequently worn by celebrities like Jang Wonyoung and Kendall Jenner, Miu Miu’s visibility soared. Hashtags such as “Y2K campus style” and “Miu-lennial heiress aesthetics” gained traction across Xiaohongshu, Weibo, and Instagram, inspiring countless imitators. From jeweled hair clips to crystal-trimmed underwear, the brand’s products consistently landed on trend and bestseller lists. In 2024, Miu Miu ranked among the top three most popular brands on Lyst’s global fashion index for all four quarters, cementing its place in the cultural zeitgeist. Miu Miu’s comeback is not just a testament to the brand’s latent appeal — it also affirms Prada Group’s instinct for aesthetic direction, content-driven marketing, and social media strategy. Its success illustrates a formula for revival: going viral through distinctive style and converting visibility into sales. Can Prada Group now replicate Miu Miu’s success and reposition Versace at the center of fashion culture? It’s a question that the entire industry will be watching closely.

Can Prada revive Versace like it did with Miu Miu?

On this page

Published April 10, 2025

Sectors

Insights

Company

Can Prada revive Versace like it did with Miu Miu?